The Critical Path Key Findings and Recommendations by MCCEI, Inc.

The Critical Path

Positioning Maryland as an Innovation Leader in the Global Construction Industry Key Findings and Recommendations

The Critical Path - Key Findings and Recommendations 1

About The Critical Path Construction is a proud business that thrives on problem

solving, values dedication and craftsmanship and requires vast amounts of knowledge and professionalism. Four primary factors are now challenging construction’s standard business model. Technology. Technology is revolutionizing the way our built environment is designed, delivered and implemented. People. The construction industry struggles with a “this-is-how-we’ve-always-done-it” mindset. An aging workforce and impending “brain drain” from retirements could lead to tremendous opportunity for future practitioners and business owners. Pathways. Maryland has an excellent education system, but it faces immense competition from other states at the post-secondary level and pathways to potentially fulfilling careers are not apparent. Perception. The industry’s perception among young people hinders their desire to examine construction when planning a career path. Leaders in Maryland’s construction business, education and government saw these trends emerging and formed the Maryland Center for Construction Education and Innovation (MCCEI). MCCEI engaged the construction industry on what it needs from Maryland’s education system to get in front the technological and workforce changes. During MCCEI’s first year, a total of 126 industry leaders were interviewed on how they saw this business changing over the next 10 years. The Critical Path is a summary of their perceptions and the resulting 6 policy recommendations. It covers emerging technologies, building processes, business planning, and efficiencies the industry is adopting in order to remain competitive and deliver value to customers. It also covers skills gaps, educational attainment and recommendations to Maryland’s education system to teach and train the workforce of the future. This remains a proud industry where rewarding careers are perfected over a lifetime of practice, but the notion of “this is how we’ve always done it” may not be the formula for success anymore. It will take partnership, dedication, open dialogue and further refinement to implement, and that process starts now.

Contents 2

About The Critical Path

Forward

Survey Participants

Executive Summary

Policy Recommendations

Conclusion

Acknowledgements

Forward Construction professionals use an action plan that incorporates thousands of items and tasks in exact detail on how a project is going to get from concept to reality. The industry calls this a “critical path.” The recommendations made in this report, The Critical Path, are the beginning of a plan to build a world-class education system for Maryland’s construction and related built environment industries.

The entire process of producing The Critical Path has been an

exciting and challenging endeavor. Nothing like The Critical Path has ever been done before for the construction industry. MCCEI interviewed 126 professionals, some of the interviews wrapped up within an hour, most went well beyond that. With the industry reeling on its heels from the Great Recession, these professionals had dozens of things they could have been doing, but took the time to sit down and tell us what they thought. There are not enough words of appreciation to express how much validation their time gives to this project. During the interviews, some very interesting opinions and stories were shared. One story in particular stood out as a fitting metaphor for why The Critical Path was produced. An interviewee stopped mid question and said “you know how the construction business is changing? Look up there and tell me what you see” pointing at the ceiling of a recently completed office. Looking up at the ceiling, I responded that I saw a light fixture. The interviewee then asked “what do you think the electrician did to get that light installed and working?” Thinking for a minute, I responded that the electrician installed the light in the bracket, ran the power from the breaker panel to the junction box to the switch to the light circuit. Confident I passed the test with flying colors and wanting to move on to the questions at hand, the interviewee calmly stated “nope, that is actually a LED panel, and all of the wiring is low voltage, controlled by light sensors, and run by a computer server. The IT guys did all of the wiring for the lighting system.” With eyebrows raised, I questioned back that an information technology contractor performed a job that was the purview of an electrician. The interviewee responded “exactly, and when I realized that I was paying an electrician simply to install panels in ceiling brackets, I complemented him on his work but told him that he would not be needed back on site tomorrow.”

Think of the magnitude of that. One has to wonder what went through that electrician’s

mind when his work day ended. Did he shrug it off and think it was back to business as usual again tomorrow, or did the reality of the changing landscape hit him and he started doing internet searches for classes on computer controlled lighting systems? There is a technological revolution occurring in the construction industry. Materials, processes, and systems of all sorts are changing and the way we teach, train and educate the workforce, and the people pushing the buttons to the people pushing the shovels must change with it. As one survey respondent stated, a significant threat to the construction industry is “obsolete technology of conventional building – we hold on to it because we don’t know any other way.” This is why MCCEI exists. We hope you enjoy The Critical Path, but more so, we hope that you will roll up your sleeves and join us in making things happen. Sincerely,

Robert M. Aydukovic, CRE President Maryland Center for Construction Education and Innovation

Maryland Center for Construction Education and Innovation

The Critical Path - Key Findings and Recommendations 3

Survey Participants The companies listed were interviewed by MCCEI from July 2011 through April of 2012. Every attempt was made to balance the list in terms of geography, discipline, and business size.

In total, these companies, divisions and departments represent a global gross volume in excess of $45

billion and employ

over 100,000 craft, trade, design, and management

Interview Company Statistics : Geographic Breakdown by Business Location

professionals worldwide. In Maryland, these organizations represent $7.2

billion in annual volume and employ

Baltimore Metro

DC Metro

36%

13,700 state residents.

Western Maryland

Eastern Shore

Outside Maryland

13%

Brian P. Andrews

Charles T. Breeding

Christian M. Chambers

Matthew J. Daw, P.E., LEED AP

Arthur N. Fuccillo

Max Hernandez

Anonymous

Eric C. Brown, LEED AP

Francis “Frank” H. Chaney, II

John Driggs

Michael Furbish

Nicholas V. Hill, Sr.

Gregory W. Brown

Bernard A. “Andy” Cheezum, Jr., CHC

Michael F. Dugan

Thomas M. Gaines, LEED AP

Richard G. R. Hillman

Carl J. Buch

Paul J. Choquette, III

Joseph A. Easley

Michael J. L. Greene, LEED AP, CCM

Brett R. Hitt

Scott D. Bulera

Terry Coakley

Douglas W. Eder

Sharon R. Grinnell

Edward M. Hord, FAIA

Mike Burlas

William Cole, Jr.

Jon Eisen

Robert Grottenthaler, P.E., LEED AP, DBIA

Jason Jacobson

Patrick A. Burns, P.E.

Gregory S. Colevas

Paul P. Elias

Dale Gruber

Stephen W. Jensen, P.G.

Nevin Camp

M. Teresa Cook

Pierce J. Flanigan, IV

John Brady Harmon, Jr.

Michael S. Johnston, P.E.

Kevin J. Foley

Gregory E. Harraka, LEED AP, DBIA

Sharon Justice

Robert Fraga, FCMAA, AIA

Ben Harries

Gregg S. Kaderabek

Steven J. Frederickson, LEED AP

Adrian Harrison, Jr.

Davor Kapelina

Senior Project Manager Kettler McLean, VA Baltimore, MD

Anonymous Rockville, MD

Dwayne Austin

Vice President, Operations Manager Eastern Shore Joseph M. Zimmer Inc. Contractors Salisbury, MD

Daniel Baker

Executive Vice President Evans Builders, Inc. Salisbury, MD

John W. Barotti, P.E., LEED AP Senior Vice President Skanska USA Building, Inc. Rockville, MD

Carl O. Belt, Jr.

President The Belt Group, Inc. Cumberland, MD

William L. Bowen, II

Area Manager IA Construction Corporation Cumberland, MD

Jerry L. Bowman

Executive Vice President Morgan-Keller, Inc. Frederick, MD

Robert S. Boyd

President Regional Builders, Inc. Seaford, DE

David C. Bramble

President David A. Bramble, Inc. Chestertown, MD

General Superintendent David A. Bramble, Inc. Chestertown, MD

Senior Vice President of Operations & Principal KBE Building Corporation Columbia, MD President Waynesboro Construction Frederick, MD President Buch Construction Laurel, MD General Manager Turner Construction Company Baltimore, MD Vice President Miller & Long Bethesda, MD

Vice President, Group Operations Mortenson Construction Alexandria, VA President N-Tech Mechanical Services, Inc. Frederick, MD

Timothy R. Campbell President/CEO Callas Contractors, Inc. Hagerstown, MD

Stan D. Carlat

Operations Manager Hensel Phelps Construction Company Chantilly, VA

Jason A. Carter, LEED AP Vice President John J. Kirlin, LLC Rockville, MD

Maryland Center for Construction Education and Innovation

Partner Crimson Partners Herndon, VA

Chairman of the Board Chaney Enterprises Waldorf, MD

Vice President Willow Construction, LLC Easton, MD

Vice President Gilbane Building Company Laurel, MD Chief Executive Officer Coakley Williams Construction Gaithersburg, MD Vice President Robert W. Sheckles, Inc. Frederick, MD Division President Clark Construction Group, LLC Bethesda, MD Associate Vice President for Administrative Services UMBC Baltimore, MD

William Cox

President Corman Construction Annapolis Junction, MD

Chuck Crowther

Vice President Estimating Dixie Construction Company, Inc. Churchville, MD

Principal Keast & Hood Co. Washington, DC

President John Driggs Company, Inc. Capitol Heights, MD President AES Electrical, Inc. Laurel, MD Vice President Archstone Alexandria, VA

President Oak Contracting, LLC Towson, MD Managing Principal The Eisen Group Washington, DC Senior Vice President, Construction The JBG Companies Chevy Chase, MD President P. Flanigan & Sons, Inc. Baltimore, MD Chief Financial Officer E. Allen Reeves, Inc. Abington, PA Director, Facility Portfolio Management Services McDonough Bolyard Peck Columbia, MD President The Christman Company Reston, VA

Executive Vice President Lerner Enterprises Rockville, MD

Corporate Secretary CAM Construction Timonium, MD

President Furbish Company Brooklyn, MD

Vice President Callas Contractors, Inc. Hagerstown, MD

President Hencken and Gaines, Inc. Cockeysville, MD

Vice President, Construction Hines Washington, DC

President and Managing Partner sGrinnell Enterprises, LLC Owings Mills, MD Vice President Barton Malow Baltimore, MD

President Dale Gruber Construction St. Cloud, MN

Director, Asset Management & Planning Southern Management Corporation Vienna, VA President HITT Contracting, Inc. Falls Church, VA Principal Hord Coplan Macht Baltimore, MD

Group Vice President, Mixed-Use Development Archstone Alexandria, VA Vice President & Principal ECS Mid-Atlantic, LLC Hanover, MD

President HDC, Inc. Cockeysville, MD

Vice President M. S. Johnston Company Hagerstown, MD

Executive Vice President Coakley Williams Construction Gaithersburg, MD

Owner BGC/Gardiner & Gardiner Contracting Crofton, MD Office Manager/Safety Coordinator John W. Tieder, Inc. Cambridge, MD

President Justice Construction Group, LLC Eldersburg, MD Vice President/General Manager Freestate Electrical Service Company Laurel, MD President/CEO AtSite Washington, DC

The Critical Path - Key Findings and Recommendations 5

Survey Participants

Interview Company Statistics : Size by Maryland Employment

Interview Company Statistics : Breakdown by Business Type General Contractor or Construction Manager

40%

David E. Katz

Senior Project Manager, IOC Projects Bechtel Canada Montreal, QE Canada

Stephen T. Kimball

Senior Vice President Kimball Construction Company, Inc. Baltimore, MD

Ronald E. Knowles, P.E. President J. Vinton Schafer & Sons, Inc. Abingdon, MD

Stephen W. LaRue, P.E. President C. William Hetzer, Inc. Hagerstown, MD

Jody L. Latimer

Director, Design and Construction Johns Hopkins University Baltimore, MD

Richard M. Lombardo President & CEO Harkins Builders Marriottsville, MD

Christopher J. Lukawski

Vice President of Development & Construction Crimson Partners Herndon, VA

Jim Lutz

Senior Vice President, Development Liberty Property Trust Malvern, PA

Eileen B. Macario

Controller Target Building Construction Crum Lynne, PA

George Maloney

President Helix Construction Services, Inc. Millersville, MD

Sub-Contractor

Developer or Owner

Architect Engineer

Heavy Civil

15%

13%

19%

Institutional Facilities

18%

38%

14%

25%

< 10

10 - 49

50 - 99

100 - 499

500 - 999

> 1000

Amy Marks

Rusty Ober

Michael Proffitt, AIA

H. Wesley Schwandt

Bruce Traggorth

Milton Matthews

Daniel F. Pallace, P.E.

Timothy J. Regan

Michael T. Shacklette

Michael E. Wagner, Sr.

David Mayhew, AIA, LEED AP

Frank R. Palmer, IV

W. Blair Rinnier, CCIM, CPM

Jay Silcox, P.E.

Dodd Walker

Douglas McCoach, AIA, NCARB, LEED AP

Richard “Skip” Parks, P.E., LEED AP

Vernon Roberts

Michael McGeady

Jeffrey A. Penza, AIA, LEED AP

Anthony Rodgers

Dwight Miller

Scott Peterson

Bruce C. Rogers

Tim Miller

Steven M. Petri, Sr.

Michael W. Ruth, CCC, LEED AP

Mairav R. Mintz, P.E.

Dave Pollin

Enrique Salvador, P.E., LEED AP

M. Marc Munafo

Andrei Ponomarev

Michael A. Schlegel

Robert W. Nilsson

Tonja Potter, LEED AP

Douglas Schmidt

President XSite Modular Clinton, NJ Executive Vice President Commercial Interiors, Inc. Hanover, MD Director, Architecture and Engineering Towson University Towson, MD Vice President RTKL Associates, Inc. Washington, DC

Business Development Manager Cianbro Corporation Baltimore, MD President Gillis Gilkerson, Inc. Salisbury, MD Chief Financial Officer AES Electrical, Inc. Laurel, MD Vice President, Branch Manager McDonough Bolyard Peck Columbia, MD President CAM Construction Timonium, MD

Senior Advisor Turner International, LLC Stevensville, MD

Maryland Center for Construction Education and Innovation

Project Manager McDonough Bolyard Peck Columbia, MD Director of Construction Merritt Construction Services Baltimore, MD Senior Vice President The Whiting-Turner Contracting Company Towson, MD Executive Associate Heery International, Inc. Baltimore, MD

Principal Penza + Bailey Architects Baltimore, MD

Vice President of Operations Commercial Interiors, Inc. Hanover, MD Owner DECA, Inc. Baltimore, MD

President The Buccini/Pollin Group, Inc. Washington, DC Project Manager Akridge Washington, DC

Project Manager McDonough Bolyard Peck Columbia, MD

President Proffitt & Associates Frederick, MD

Executive Vice President The Whiting Turner Contracting Company Towson, MD President Rinnier Development Company Salisbury, MD Estimator/Project Manager John W. Tieder, Inc. Cambridge, MD Executive Vice President A & R Development Corporation Baltimore, MD Business Development Kinsley Construction Timonium, MD Senior Consultant McDonough Bolyard Peck Columbia, MD

Associate Director - Capital Projects University of Maryland College Park, MD President Bozzuto Construction Company Greenbelt, MD Principal Chesapeake Real Estate Group, LLC Baltimore, MD

President BPGS Construction, LLC Wilmington, DE

Director of Estimating & Pre-Construction Hencken and Gaines, Inc. Cockeysville, MD

President The Michael Group, Inc. Baltimore, MD

Vice President- Operations Freestate Electrical Construction Company, Inc. Laurel, MD

David A. Bramble, Inc. Chestertown, MD

Vice President – Development Akridge Washington, DC

Jay Sinclair, Jr.

David W. Wallace, P.E.

Controller A&E Construction Company Upper Darby, PA

Partner RK&K Baltimore, MD

Donald B. Smith, Jr.

Craig Wess

President Conewago Enterprises, Inc. Hanover, PA

President Manekin Construction Columbia, MD

Francis X. Smyth

Sandra V. Whipp, PHR

CEO/President Century Engineering Hunt Valley, MD

Director of Human Resources RTKL Associates, Inc. Washington, DC

Adam E. Snavely

President and CEO The Poole & Kent Corporation Baltimore, MD

Bill Stewart, LEED AP

Principal Schnabel Engineering Baltimore, MD

Vice President and City Manger Liberty Property Trust Columbia, MD

Gerald N. Therrien President Therrien Waddell Gaithersburg, MD

John W. Tieder, III

Principal Specialized Engineering, Inc. Frederick, MD

George E. Wirth, P.E.

Project Manager Gables Residential McLean, VA

Lisa G. Sullivan

David I. Wiegand, P.G.

Tiffani Worthy

Director of Learning and Development M. C. Dean Dulles, VA

Dirk Yoder

President Daystar Builders, Inc. Grantsville, MD

Vice President John W. Tieder, Inc. Cambridge, MD

The Critical Path - Key Findings and Recommendations 7

“

Executive Summary This was an interesting process, it really made you think in different ways.

”

~ MCCEI Survey Participant

Amidst a sea of economic tumult, skills shortages in

construction have hardly been a significant source of preoccupation for social scientists and other stakeholders in recent years. Skills shortages are typically associated with rapidly expanding industries and since the onset of the recession, no major U.S. industry suffered as much proportionate job loss than construction. Since December 2007, the U.S. construction industry has shed nearly 2 million jobs, 47 percent in nonresidential construction and the balance in residential construction. At its cyclical peak achieved in February 2012, construction unemployment reached 27.1 percent. By mid2012, that rate had fallen to 12.8 percent, still well above historic norms and U.S. economic averages, but sharply in decline. Much of this decline occurred as former construction workers secured employment in other economic segments, including manufacturing, distribution and retail. The implication is that the market has pushed many highly talented professionals into other industries, leaving voids in the construction labor force. At the same time, pent-up demand for construction has been building, particularly in the category of infrastructure. The nation’s bridges, highways, water systems, sewer systems, storm water management systems, dams and levies continue to falter, negatively impacting productivity and generating enormous one-time expenditures for governments at all levels. The impact of technology is contributing to pent-up demand for construction as well as office buildings, hotels, and other structures increasingly needing to be retro-fitted to improve performance along various dimensions, including in terms of energy efficiency. Presumably, capital markets will eventually heal, job creation will accelerate and the down cycle in construction will be reversed. Already, progress is observed in the housing market, with starts up substantially. As one respondent eloquently stated “I think we will be fighting for people before too long as the market improves.”

A First-of-its-Kind Survey The Maryland Center for Construction Education and Innovation (MCCEI), in conjunction with Sage Policy Group, Inc. and Regional Economic Studies Institute (RESI), of Towson University, developed this report to provide stakeholders with an understanding of how Maryland’s educational institutions can help bridge current and future gaps between construction skills demand and supply. Increasingly, construction services are being exported to other regions and other nations. If Maryland is able to provide a highly competitive workforce, its construction companies and industries will be positioned to provide services to other parts of the world, bringing income back home with them. Moreover, given daily alerts regarding exploding pipes, buckling roads and crumbling schools, a ready construction workforce is necessary for the maintenance of the state’s historically high quality of life and broadly shared prosperity. The State of Maryland and many local governments have focused on a number of issues related to construction and real estate, including septic systems, storm water management, wastewater treatment, green construction, building safety, historic preservation and architectural design. This report provides primary and secondary data indicating that the skill sets needed to address these issues are simply not in existence. The analysis is based on a first-of-a-kind, in-depth survey of U.S. construction leaders, many of whom are primarily based in Maryland. The survey asks many questions, including questions regarding what educators can and should do to support the industry, accelerate the diffusion of technology, reduce costs and enhance project safety.

Maryland Center for Construction Education and Innovation

Core Analytical Findings The survey, in conjunction with a review of relevant literature, indicates that Maryland has an important opportunity to provide a comparative advantage to the state’s workforce and construction firms by providing more and better programing in the areas of construction management, industry software and skilled craftsmanship (electricians, carpenters, masons, etc.). Emphasis should be upon new 4-year programs in the area of construction management, specialized training in specific software including BIM, training in green construction and modularization, and combined academic/apprenticeship programs for skilled craftspeople.

Brain-Drain Survey respondents also indicated that a shortage of skilled craftsmen and construction supervisors emerged during the past 5 years. This is simply remarkable given that over this period, residential construction activity slipped by nearly two-thirds and nonresidential construction declined by roughly a quarter. In spite of the decline in activity, shortages can be attributable to inadequate educational programming opportunities, apathy among the young regarding industry prospects, and significant labor force departures due to rapid retirement. With retirement expected to be even more elevated going forward, skills shortages could become debilitating. One survey participant summed it best by stating “if senior owners are not petrified by continuity, they should be.” This is true not only for demographic reasons, but also for reasons of technology and process. Many survey respondents also emphasize the need for ongoing training of their existing workforces, particularly in the areas of management/leadership, communications, BIM, and LEED certification.

“

We need to do things to inspire kids to go into this field. The best and brightest were in engineering, it then shifted to Wall Street, now the interest is in Information Technology.

”

Anticipated Percentage of Total Workforce Retirements for Interviewed Companies Through 2020 None

20% or Less

20 - 40%

40% or Greater

48%

40%

Anticipated Labor Shortages Through 2020

70%

13%

10%

Skilled Trades and Crafts

Engineering and Technology

Project Management

Other

The Critical Path - Key Findings and Recommendations 9

Executive Summary

Policy Recommendations

Technology

The study team combined the primary information gathered from the survey with the findings from the literature review to produce a set of strategies for Maryland construction stakeholders, including industry business owners, state policymakers, the Maryland State Department of Education, and state colleges and universities. These strategies correspond with a list of action items that are outlined on the following pages.

According to 55 percent of survey respondents, advancements in technology, BIM, and retrofitting collectively represent the most dramatic sources of change in the way construction will be delivered over the next ten years. Technologies expected to be the most broadly diffused over the next decade include BIM, mobile computing, GPS, and newly emerging construction-related software. Part of this shift toward greater capital intensity and technology is the ongoing shortage of construction talent, which has led construction firms to scramble to find alternative production methods. BIM and other technologies are expected to become everyday tools in the near future, but survey respondents reported a concern that very few workers are presently skilled in these programs. This represents an important source of opportunity for local high schools, colleges and universities and a potential source of competitive advantage for both individual workers and local companies in Maryland alike.

“

It is going to be a computer driven industry in five years.

”

Survey Participant’s Views on Top Emerging Technologies 55% BIM/VDC/GPS/Other Software 12% Wireless Communications/Components 11% Prefab and Modular Components 10% Alternate Delivery Models 8%

Renewable Energy/Energy Efficient Components

Better Equipment and Safety Measures

In Maryland, if something can be done, it will get done. There is the will, size and forethought to make this happen.

”

#1 Create or expand construction education programs at Maryland four-year institutions to meet the demands of Maryland construction companies; #2 Better align K-12, high school Career and Technical Education (CTE), community college, and apprenticeship programs with new construction skill requirements; #3 Create or strengthen articulations between high schools, CTE programs, apprenticeships, community colleges, and universities to define educational pathways for a career in construction;

Education A number of construction industry leaders indicated that many of their recent recruits do not come from Maryland. Many come from universities in neighboring states such as the Pennsylvania State University and Virginia Tech. This represents another indication that Maryland’s educational infrastructure has not served the local construction industry well in recent times. Thanks to the MCCEI survey, there is now concrete information telling educators just how they can change with the industry going forward.

“

#4 Create a public image campaign to convey attractive constructionrelated career options; In 20 plus years in this business, I have never hired anyone out of a Maryland based program.

”

Maryland Construction Industry College Graduate Recruitment

#5 Create a strategy to include demographic groups that have not historically participated in the industry’s workforce; and, #6 Recognize and adapt to the substantial technological changes in the construction environment necessary to keep the industry competitive.

30% - Maryland Based Schools ~ 70% - Out-Of-State Schools

Maryland Center for Construction Education and Innovation

The Critical Path - Key Findings and Recommendations 11

Policy Recommendation #1 Create or expand construction education programs at Maryland four-year institutions to meet the demands of Maryland construction companies.

Policy Recommendation #2 Better align K-12, high school CTE, community college, and apprenticeship programs with new construction skill requirements.

Maryland has two institutions that have bachelor’s degree programs in construction management: the University of Maryland Eastern Shore (UMES) and Morgan State University. In addition, the University of Maryland College Park has a bachelor’s degree program in civil engineering with construction management emphasis. However, the output of students with construction-related degrees from these institutions is insufficient to meet the demand of the state’s industry. Moreover, there are no four-year construction education programs in Western Maryland.

High school remains the basic foundation for career readiness and critical thinking, but the career readiness currently provided by a high school diploma does not meet the needs of the construction industry. Ongoing changes in the industry necessitate continued investment in training at all educational levels, with community colleges and apprenticeship programs serving as vital elements. This investment will mitigate the skills shortages that are already apparent and provide immediate employment and skills-generating opportunities to high school and college graduates. Industry leaders suggest the following:

“

• •

•

Convene a special purpose task force comprising industry, postsecondary education, the Governor’s Workforce Investment Board, and Maryland Higher Education Commission representatives to formulate what an ideal university-level program should encompass; Quantify the annual demand for construction related degreed students from Maryland’s construction industry through further research and analysis; Work with UMES and Morgan State and select other appropriate institutions to expand or develop in-state programs to meet industry demand. Ideally, the chosen institution(s) should offer undergraduate degrees in engineering, design, business, computer sciences, environmental studies, and/or geoscience. It may be the case that only a much larger university is able to fully supply the technology and faculty necessary to produce the next generation of construction leaders; Benchmark other university programs for optimal program structure and consider adding other programs such as a bachelor’s degree in building technology or industry group accredited programs; and, Provide bachelor’s degree programs that fully accept relevant associate degree programs from community colleges.

world. Maryland does not have the programs. Without more programs, the industry will fall behind.

“

A significant trend in survey participant responses is that ideal university programs should offer significant work-study components. The ultimate objective is to provide practical, onsite field experience that emphasizes technical, communications, business, and leadership skills. Industry leaders indicate that there is a need to:

•

We don’t compete with the Penn States of the

”

I would like to see a 4 year degree with a work-study component. Grads from college with two years relevant experience are vastly important.

”

36%

of survey participants were unaware that Maryland has existing bachelor’s degree programs in construction management.

Does Maryland Need Another 4-Year Degree Program in Construction Management?

Yes - 65%

No - 34% 1%

“

means is that everyone on a roofing crew has a BA degree.

”

A Great Start: MSDE’s Construction Design and Management Program

• Increase engagement of construction professionals with school program advisory boards and the education community;

MCCEI and the Maryland State Department of Education (MSDE) have started addressing the alignment between industry demand and Career and Technical Education (CTE). Through partnership with MSDE and industry representatives, a new CTE program is being developed called the Construction Design and Management program. This is a 4 course program where high school students will learn about the design and construction process through project based learning. The courses are: 1. Introduction to Construction Design and Management 2. Principles of Construction Design 3. Advanced Design and 3-D Modeling 4. Advanced Construction Management

• High school Career and Technical Education (CTE) programs

and community college advisory boards are encouraged to use MCCEI and its industry partners as a resource for technology and workforce trends; • Identification of promising and engaged students for internships and mentorships; • Emphasis on CTE program elements including hands-on field and jobsite experience, mentorships and internships, articulations with apprenticeship programs, community colleges, and universities, Building Information Modeling (BIM), Integrated Project Delivery (IPD), and communication and interpersonal skills; • Enhance and expand Technology Education classes in Maryland’s middle schools. Include a focus on three-dimensional modeling, analytical thought, processes and scheduling, and hands-on experience with tools and software; • Enhance and expand community college level education and training opportunities through additional support and investment both directly and through organizations like the Construction and Energy Technologies Education Consortium (CETEC); • Develop a universally accepted apprenticeship format with standardized criteria that will be recognized by employers in both union and merit shops; and, • Establish the BIM Institute of Maryland to bridge the widening gap between advances in building technology and industry participants.

When everyone has to go to college, all that

Top Areas for Investment and Promotion to Best Serve the Construction Industry 30% College Level Construction Management/Engineering 27% High School CTE 18% Better Marketing of Programs/Career Options 14% Trade Schools and Apprenticeships 5%

More Industry Involvement

Top Recommended Concentrations for Maryland’s Education System to Best Serve the Construction Industry

Maryland Center for Construction Education and Innovation

BIM, Design, Computer Technology

Field Experience

Math/STEM

Communications, Interpersonal Skills

22%

19%

17%

11% Career Readiness; 8% Other Education; 7% Business Management

11%

The Critical Path - Key Findings and Recommendations 13

Policy Recommendation #3 Create or strengthen articulations between high schools, CTE programs, apprenticeships, community colleges, and universities to define educational pathways for a career in construction.

Policy Recommendation #4 Create a public image campaign to convey attractive construction-related career options.

Education pathways for careers in construction are needed to develop the necessary industry skills and attract talent. While articulation between CTE programs, community colleges, apprenticeships, and four-year institutions in Maryland exist, there is little apparent public knowledge beyond guidance counselors and program administrators. Without that transparency and connectivity, students will continue to lack interest in construction career pathways. To create pathways, the following steps should be taken:

Construction’s traditional image limits the industry’s ability to recruit exceptional candidates. A public campaign that conveys the exciting, attractive opportunities and broad experiences of a career in construction would improve the image of the industry and encourage recruitment of highly skilled individuals. While construction executives are aware of some career pathways and opportunities that exist, parents, guidance counselors and potential career seekers may not. The public image campaign should:

“

the parents - show a clear pathway to college credits.

“

• Establish formal articulation agreements where and when

feasible; • Benchmark neighboring states and establish a best practices model for Maryland that allows for maximum flexibility and credit for high school and CTE achievement to count toward associate’s degrees and apprenticeships; • Create a statewide database and user tool for articulation like Artsys for all education sources; • Provide wage, income, and benefits information to potential workforce entrants; • Articulate high school CTE programs and apprenticeships with community colleges; • Offer “two plus two” programs with four-year universities. • Reduce redundancy between classroom and apprenticeship training as appropriate—for example, more apprenticeship programs could accept CTE credits; and, • Align apprenticeship programs with community college or fouryear university programs.

Improve articulation agreements and reach

”

Technical vs. management vs. theoretical, create and define the pathways. Many people

”

have no clue about the career opportunities. Industry Opinion on General Education Levels Necessary for Relevance Over the Next 5 Years

65%

28%

Increase

Stay Same

Decrease

“ “

Kids want to be in high tech. A hammer is not a high tech instrument.

”

In construction, you have a huge sense of accomplishment at end of the day. You can see a positive impact on the community by

• Mimic other successful recruitment campaigns, such as those

developed by branches of the U.S. military; • Focus on the occupational categories that require a postsecondary degree, including engineering, architectural, and managerial categories; • Encourage construction stakeholders to reach out to parents, career counselors, and students, to help them learn about the potential salaries, careers, and career pathways; • Make a concentrated effort for promotion of continuing education opportunities for the existing construction workforce through Maryland’s community college network; • Emphasize that specialized training and education beyond high school is needed to be competitive; • Present construction as a high-tech industry, with emphasis on digitization, modularization/manufacturing, environmental science, and materials science; and, • Emphasize the merits of production, the technical character of the industry, opportunities for high wages, and the growing demand for construction skills;

what you build.

”

• Utilize social media platforms for branding and promotion to

increase awareness of the campaign and the industry’s evolving image; • Promote technical construction careers as part of the pathway to business ownership; • Support CETEC’s efforts to build employer awareness of the existing and extensive inventory of construction and skilled trades programming in MD’s community colleges; • Emphasize sustainability to underscore the proper balance between economics and the environment; and • Consider possible partnerships between the industry and the community through charitable activities to attract new and diverse workforce entrants.

Education Levels and Trends for Construction Professionals Top Responses on Obstacles to Recruiting People to the Construction Industry Job Category

Preferred Education Attainment

10 Year Trend

Managerial

Bachelor’s Degree

Shifting slightly towards master’s degree

Site Superintendent

Apprenticeship

Shifting rapidly towards bachelor’s degree

Skilled Trades

Apprenticeship

Shifting rapidly towards apprenticeship plus associate’s degree

General Labor

High School Diploma

Shifting moderately towards apprenticeship

Maryland Center for Construction Education and Innovation

19% Percieved Low Pay, Dangerous, Manual Labor

16% Negative Perception

14% Industry Negatively Impacted by Recession

12% Boom-Bust, Cyclical

11%

Not a College Track Career in High School

Poor Industry Promotion and Understanding

7% Competition from Other Careers

The Critical Path - Key Findings and Recommendations 15

Policy Recommendation #5 Create a strategy to include demographic groups that have not historically participated in the industry’s workforce.

Policy Recommendation #6 Recognize and adapt to the substantial technological changes in the construction environment necessary to keep the industry competitive.

Given the changing needs of construction, the industry will need access to the entire labor pool across all races, ethnicities, genders, and ages, to attract ideal candidates. Diverse labor is vitally important to the construction industry and should be encouraged, mentored, and nurtured for expanding roles in the industry. To attract a more diverse workforce, the industry should:

Technology is revolutionizing the construction industry in terms of process, materials, logistics, waste reduction, and increased efficiency. Opportunity exists for the Maryland construction industry to become an export leader by focusing on modular construction and related training as well as advanced engineering and design that improve safety and efficiency. These growth areas need to be recognized and related education and training need to be developed to keep companies competitive in world markets. To enhance competitiveness, the industry should:

• Structure the public image campaign to be inclusive of nontraditional and diverse participants; • Create or expand mentorship opportunities between industry practitioners and students using the ACE Mentorship Program as a benchmark; • Assemble a special focus task force to target opportunities for diversity with an emphasis on: • High school/GED attainment, • “Career pathway” programs using contextual accelerated learning strategies to advance worker skills (Department of Labor, Licensing and Regulation; community colleges; workforce investment boards; and CBOs), • Three-dimensional modeling, • General business knowledge and training, • Related apprenticeship and community college offerings, and • English as Second Language (ESOL) programs in high schools; and, • Adopt social media platforms for job searches to reach a more diverse labor pool.

“ “

A diverse workforce has a massive impact to the good. Forces people to improve.

”

Construction will always need labor - someone HAS to do it. This is how companies start.

”

71%

of survey participants did not think either the Maryland education system or the industry itself is doing enough to create a future construction workforce pipeline.

Top Opinions from Interview Companies on Future Workforce Pipleline Development

31% Stronger Focus on CTE, Apprenticeships, and Career Pathways

23% Industry Needs to Better Partner with Education

19%

16%

Change Negative No Changes Industry Perception Needed

Maryland Center for Construction Education and Innovation

• Adopt BIM and IPD to increase efficiency and reduce waste—institutional and governmental users have already shifted over to these technologies; • Adapt to modular and prefabricated construction to increase efficiency, improve quality, and reduce price; • Adopt new contracting and delivery models (such as designbuild, design-assist, Guaranteed Maximum Price [GMP], or hybrid contract models) to mitigate risks, accelerate schedules, and reduce budgets; • Embrace new deal structures including public-private partnerships (P3s), equity investments, and builder-developer teams; and, • Diligently pursue modular building and prefabrication component operations for expansion or relocation to Maryland through economic development activities and initiatives, leveraging the state’s transportation networks and export capacities.

On BIM, Modular and Prefab

“ “

It is game changing. We are on the precipice

”

on how buildings are built.

People don’t know what modular and prefab really is. Need to educate on 3D and up, it’s the way to go.

”

Interview Participant Opinions on Changes to Construction Processes through 2020 34% Increase in BIM/IPD/GPS/Communications 18% Will Require a Different Business Approach 15% Increase in Prefab/Modular/Materials 10% New Contracting/Procurement Methods 5%

Constriction in Labor Supply

Cutthroat Environment/Industry Consolidation

Green Building

Renovations/Retrofits

10% Other

Less Emphasis on College, More Emphasis on Technical Careers

Immigration is the Future Workforce

The Critical Path - Key Findings and Recommendations 17

Conclusion This study has determined that Maryland’s construction workforce is simply not prepared for the industry’s future. Correspondingly, Maryland will remain dependent on other states to provide higher quality workers. This will result in lost opportunities for local colleges and universities and higher costs for local employers. The study provides six recommendations that, if implemented with fidelity, can make Maryland a global leader in construction. Since construction is increasingly becoming a global industry given modularization and prefabrication, there is an opportunity to increase Maryland’s construction service exports, not only to other states, but also to other nations. The most important priority is to expand or create construction management programs at the bachelor’s degree level at colleges/ universities in Central Maryland. These are where the major construction firms operate, and there is presently no contemporary programming available to support these and other firms. There is also a need for better articulation between high schools (e.g. CTE programs), community colleges, four-year colleges, apprenticeship programs, and on-the-job training programs offered by employers. Better articulation will not only help create a higher quality workforce but will also do so efficiently.

MCCEI Board of Trustees Officers

Martin G. Knott, Jr.

Gino Gemignani

Dyan Brasington

Michael Henderson

Chairman, MCCEI President Knott Mechanical Hunt Valley, Maryland

Secretary/Treasurer, MCCEI Vice President Towson University Towson, Maryland

Vice Chair, MCCEI Senior Vice President The Whiting-Turner Contracting Company Baltimore, Maryland Officer, MCCEI President ABC Baltimore Metro Chapter Towson, Maryland

Members

Vance Ayres

Secretary DC Building Trades Council Camp Springs, Maryland

Jerry L. Bowman

Executive Vice President Morgan-Keller Construction Frederick, Maryland

Scott D. Bulera

General Manager Turner Construction Company Baltimore, Maryland

Francis “Frank” H. Chaney, II Chairman Chaney Enterprises Gambrills, Maryland

Bernard A. “Andy” Cheezum Vice President and Principal Willow Construction Easton, Maryland

Paul J. Choquette III

Senior Vice President, Mid Atlantic Gilbane Building Company Laurel, Maryland

William Cox

President and Owner Corman Construction Annapolis Junction, Maryland

Ronald DeJuliis

Gregg S. Kaderabek Vice President AES Electrical Inc. Laurel, Maryland

Stephen T. Kimball

Senior Vice President Kimball Construction Co., Inc. Baltimore, Maryland

Katharine Oliver

Deputy Superintendent Maryland State Department of Education Baltimore, Maryland

Bernard J. Sadusky, Ed.D.

Executive Director Maryland Association of Community Colleges Annapolis, Maryland

Michael Schlegel

President Bozzuto Construction Company Greenbelt, Maryland

Lynn Selby

Executive Director Governor’s Workforce Investment Board Baltimore, Maryland

Adam E. Snavely President and CEO Poole & Kent Baltimore, Maryland

Commissioner, Division of Labor and Industry Department of Labor, Licensing and Regulation Baltimore, Maryland

Designees

Kelton Addison

Maryland Apprenticeship and Training Program Department of Labor, Licensing and Regulation Baltimore, Maryland

Maryland Center for Construction Education and Innovation

Pat Mikos

Program Manager, Division of Career and College Readiness Maryland State Department of Education Baltimore, Maryland

Acknowledgements

Production

The Critical Path was produced by MCCEI and a consultant team of Sage Policy Group, Inc. and the Regional Economic Studies Institute (RESI) of Towson University. Charts and graphs are the product of MCCEI unless otherwise noted.

MCCEI Staff Contributors Robert M. Aydukovic, CRE Lauren C. Mari

This report would not have been possible without the support and cooperation of our partner organizations and dedicated Board of Trustees. We cannot thank you enough.

MCCEI Interns Charles P. Kerrigan Simeon T. E. Williams

Special thanks to: • All of the interviewees that took the time to meet with and talk to MCCEI staff and consultants to share their views on the future of the construction industry. • The Governors Workforce Investment Board. • The Department of Labor, Licensing and Regulation, state of Maryland. • The Maryland Economic Development Corporation. • Towson University, Division of Innovation and Applied Research.

About MCCEI

MCCEI is an independent 501-c-3 corporation that was formed through the Governor’s Workforce Investment Board. The primary missions of the MCCEI are to work in partnership with business and government to build a worldclass education system for Maryland’s construction industry, promote construction as a career of choice and to serve as an information marketplace for the industry and potential career seekers.

About Sage Policy Group

Sage Policy Group, Inc. is an economic and policy consulting firm specializing in economic, fiscal and legislative analysis, program evaluation, and organizational and strategic development. The firm’s clients include public agencies at every level of government, multinationals, law firms, developers, money managers and an array of nonprofit organizations operating in a variety of segments.

About The Regional Economic Studies Institute Towson University’s Regional Economic Studies Institute (RESI) is a leading expert on Maryland’s economy. RESI provides a vast array of services include economic forecasting, economic and fiscal impact analysis, market studies, workforce and commuter analysis, and human services analysis. RESI dedicates itself to providing the highest level of services to decision-makers in the private, public, and nonprofit sectors while emphasizing an interdisciplinary approach that combines knowledge with technology.

Contributing Consultants Anirban Basu Chairman and CEO Sage Policy Group, Inc. Carl DeLorenzo Chief Operating Officer Sage Policy Group, Inc. Rebecca Ebersole Research Associate, RESI Towson University Sharyn K. Grove Design Manager Towson University Milton Hunt President Hunt International Daraius Irani, Ph. D. Executive Director, RESI Towson University Bobbie K. Laur Director, External Affairs Towson University Lauren Moore Research Associate Sage Policy Group, Inc. Printing Schmitz Press Sparks, Maryland

The Critical Path - Key Findings and Recommendations 19

7400 York Road, Suite 302 Towson, MD 21204 410-704-5981 office 410-704-3684 fax www.mccei.org

Maryland Center for Construction Education and Innovation